Following the sale, Philips will still be able to profit from license agreements for the next seven years, as Gibson will be using the brand name. These agreements are dependent on the turnover that Gibson will be making with the business, but there is a minimum, according to a Philips spokesperson.

The sale will be finalized towards the second half of 2014, whereas the business will only be officially transferred to Gibson in 2017 due to ongoing license agreements with other parties.

This move continues Gibson’s expansion into realms outside of MI, including investment in Onkyo in 2012, and the acquisition of TEAC in 2013.